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Financing your Property: Mortgages in Spain

If you want to buy a property in Spain, a new home on the Costa Blanca or a holiday apartment in Spain the right solution might be to take out a mortgage with a Spanish bank as the interest rates are usually a lot lower.

We highly recommend you to shop around and check the offers from different banks as there is a lot of competition between Spanish banks.

Once you find the best offer for your mortgage you will be asked by your bank to provide them with some paperwork in order to check if you are able to pay. Liabilities should not exceed 35% of your net monthly income. Banks use the following details to check your ability to pay off the mortage:


  • Existing liabilities (existing loans or mortgages, monthly maintenance agreements..)
  • Future liabilities including the proposed loan
  • Present income and investments.



The most common documents requested are the following:


Non-resident buyers

  • A copy of your passport
  • Marital status, age, children etc. (married couples applying for a mortgage should provide information about both spouses)
  • Your last three salary pay statements or pension vouchers
  • The last tax declaration made in your home country (P-60)
  • If you are an employer or are self-employed, a copy of your tax returns and annual accounts for the last two fiscal years
  • Information about other properties owned fully or partly
  • Details of the property you are planning to buy
  • A brief description of current job situation, other incomes, investments, debts and other properties whether abroad or in Spain, etc.
  • Information about any other sources of income



Buyers with Spanish residence permit

  • Copy of the residence permit
  • Marital status, age, children etc. (married couples applying for a mortgage should provide information about both spouses)
  • Your last three salary pay statements or pension vouchers
  • Details of the property you are going to buy (“Nota Simple”)
  • Copy of your last tax declaration
  • Photocopy of the last IBI bill
  • Information about any other owned property
  • Information about any other debts
  • Information about any other sources of income
  • Annual accounts for the last two fiscal years (if employer or self-employed)


You will also be required to have a NIE (Numero de Identificación para Extranjeros) which is like a tax identification number you will need in order to buy or sell property in Spain.

After checking if you are able to pay the mortgage, then the bank will send a surveyor over to evaluate the property you want to buy and after the evaluation report you will finally know if you can borrow the amount you requested. Most Spanish banks currently offer mortgages of 60-80% of the property evaluation. They normally offer a lower amount if you are not resident in Spain and it is not your residential home.

As part of our legal services we offer our clients our help to arrange a mortgage in Spain with no inconvenience for you. We will take all the necessary documents to different banks, negotiate the best conditions for you and make sure that you get the best financing option to buy your property in Spain.

Smith&Sanchez